Commerce Dept: China Needs Licenses for Nvidia Blackwell Chips

Commerce Department issued emergency guidance requiring any China-headquartered company to obtain a U.S. government license before purchasing advanced AI chips, regardless of transaction location. The move closed the loophole that opened in May 2025 when enforcement of prior restrictions paused, allowing ByteDance and Alibaba to route Nvidia Blackwell chips through Malaysia and other overseas subsidiaries. Industry estimates indicate hundreds of thousands of the processors reached Chinese entities during the window, raising concerns over military and surveillance applications. The chips already delivered remain in China with no mechanism for recovery.